The stock market staged an impressive recovery near midday Wednesday. Wall Street woke up in a bad mood, shaken by news that a China manufacturing index contracted for the first time in two years. In stock market news, the Nasdaq composite dropped 1.9% intraday, but recovered nicely. Goldman Sachs (GS) outperformed in the Dow Jones, while chip stocks like AppliedMaterials (AMAT), Micron (MU) and KLA-Tencor (KLAC) led the Nasdaq 100.

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The Nasdaq was down 0.2% just after midday, while the S&P 500 was off 0.4% and the Dow Jones industrial average had narrowed to a 0.5% loss. Small caps outperformed, with the Russell 2000 up 0.6%. Volume on the NYSE and Nasdaq was tracking higher than Monday’s low, inter-holiday levels.

Stock Market News

In other stock market news, oil and gas industry groups were among the day’s top performers, helped by a nice jump in oil prices. At the New York Mercantile Exchange, February U.S. crude oil futures were up more than 3% to $46.91 a barrel.

Chip leader Xilinx (XLNX) was a nice gainer in the IBD 50, up more than 1%. Chip stocks did well overall, helping the Philadelphia semiconductor index to a gain of around 0.7%. It’s on pace for its fifth straight gain.

In the stock market, Tesla (TSLA) stock was under pressure, down 7%, after Model 3 deliveries in the fourth quarter came up a bit short of estimates.

Inside the MarketSmith Growth 250, Crocs (CROX) was a nice gainer, up nearly 5%, helped by positive comments from Susquehanna.

Deckers Outdoor (DECK), meanwhile, picked up nearly 3% to 130.27. It’s showing good action around the 50-day moving average as it works on a base with a 137.59 buy point.

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